Qatar’s new leadership is expected to accelerate plans to spin off Qatar Petroleum (QP) from the energy ministry to allow the world’s biggest liquefied gas producer to grow more quickly abroad.
Qatar’s global LNG market dominance is under threat as new producers in the US, Australia and East Africa will flood the market with new volumes in the next few years.
Industry sources say Qatar hopes that the move will speed up decision-making.
“The rationale behind the desire for international growth is the moratorium, as the growth potential at home is limited,” a source said.
QP’s growth prospects at home are severely hampered by a self-imposed moratorium on new projects to tap the world’s biggest gas reservoir, the North Field, leaving international expansion as best chance of maintaining its gas market share.
The moratorium is expected to remain in place until at least 2015. By that time, former leading Qatari LNG buyer, the US, is expected to start exporting its own LNG, while a wave of Australian projects are due to start supplying Asia – which currently buys about half Qatar’s LNG.
The first hints of changes emerged about 18 months ago when energy minister Mohammed bin Saleh Al Sada’s department was divided into a ministerial and QP business side.
Several sources said Saad Sharida Al Kaabi, director of QP’s huge ventures with foreign majors, Qatargas and Rasgas, was a front-runner to become QP’s new chief executive while Al Sada will keep ministerial functions.
QP-controlled businesses generate over half of Qatar’s gross domestic product and about three quarters of export earnings for the OPEC member.
It might take several months for the spinoff to materialise, several sources said.
